TRAI Proposes Satellite Network Provider Authorisation

On 5 November 2026, the Telecom Regulatory Authority of India (TRAI) recommended a new Satellite Communication Network (SCN) provider authorisation under the Telecommunications Act, 2023. The non-binding recommendation will take effect only if accepted by the Department of Telecommunications (DoT).

Proposed licence and fees

The authorisation would let eligible companies establish and operate satellite networks in India, including gateways and network equipment, and lease them to licensed telecom operators or internet service providers. Providers could qualify through authorised satellite capacity, a subsidiary relationship or an agreement to operate gateways in India. They would not need to own satellites, could not sell services directly to consumers and would not receive permission to launch or operate satellites. The proposed national authorisation would last 20 years and be renewable for a further 20 years.

TRAI proposed an entry fee of ₹37.5 lakh and a licence fee of 8% of adjusted gross revenue (AGR). Telecom operators could deduct payments to SCN providers when calculating their own fee liability. Spectrum would be assigned administratively for up to five years, with a possible two-year extension. The reported spectrum-charge terms differ: one figure is an annual minimum of ₹3,500 per MHz, while the detailed recommendation leaves pricing to DoT and notes its pending 4% of AGR proposal.

Direct-to-device services and safeguards

TRAI also recommended allowing satellites to connect directly to ordinary smartphones where mobile towers are unavailable. Operators could use existing spectrum without an additional charge, provided the same frequency channel is available across all 22 telecom circles. Indian-user traffic would have to pass through gateways in India and not be routed or copied abroad. Providers would need to enable real-time monitoring and lawful interception, and gateways would have to be operational within 12 months of approval.

Important Facts for Exams

• Direct-to-phone handsets: Satellite direct-to-phone services can work with unmodified smartphones that lack specialised satellite-communication support.
• Spectrum assignment rule: The Telecommunications Act, 2023 makes auction the default spectrum-assignment method but allows administrative assignment for specified categories, including satellite-based services.
• AGR is not profit: In Indian telecom licensing, adjusted gross revenue is a fee-calculation base rather than profit; allowable deductions are defined by licence terms.
• 3GPP satellite standardisation: 3GPP Release 17 added standardised 5G New Radio support for non-terrestrial networks, integrating satellite links into mobile-network standards.